Toyota Tsusho and Sojitz to Build Rare Earths Processing Plant in Vietnam

---

Researched by Industrial Info Resources (Sugar Land, Texas)--"Rare earths metals" became household words last fall, when tension erupted between China and Japan after the arrest of Chinese fishermen in disputed waters by Japanese authorities. Japan claimed that China responded by restricting rare earths exports. The two countries have been at odds over rare earths since China began locking down export quotas in 2006--which sparked global concern, since China controls more than 93% of the world's rare earths supplies.

On the periodic table of elements, numbers 57-71 and a few others have been labeled "rare earth metals." This is not due to scarcity, but because they are difficult to process and isolate. Rare earths have become important components in electronics and rechargeable batteries, and in renewable energy technology such as wind turbines. Japan is a leading manufacturer of electronics and rechargeable batteries, and has the potential to become a regional contender in renewable energy.

In light of trouble with China, resource-scarce Japan has been forced to turn elsewhere for rare earth metals. Recently, Japan and Vietnam announced intentions to develop rare earths agreements. Toyota Tsusho Corporation (TYO:8015) (Nagoya, Japan), part of the Toyota Group, and Sojitz Corporation (TYO:2768) (Tokyo) have signed an agreement with the Vietnamese government to develop a rare earths processing plant in Vietnam.

Toyota Tsusho and Sojitz plan to begin construction on the $48 million plant early next year. They have not yet selected an engineering and construction firm. The plant, to be in the Lai Chau province in northwestern Vietnam, is expected to treat 7,000 tons of rare earths concentrate per year when completed at the end of 2012.

View Project Report - 300026168

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.